Mallinckrodt bought its potential melanocortin competitors to shut off other drugs and brags the Federal Trade Commission settlement requiring a licensure of synthactin by FTC is
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To bring out some of the behind the scenes drama........
I think, as is common, Obama Justice department and FTC politicians want to get this settlement on their resumes and made a bad and fast deal before the Trump people get in. They settled last week with Deutch Bank, and Deutch was expecting to pay billions more.
Mallinckrodt is bragging publicly to the market the forcing of allowing other drug makers to compete with babies will never happen, as no parent will risk being in the trial as a control whereby their baby will not get the drug copy of Synacthen.
It was Martin Skhreli whom brought this out and bid for Questor.
$100 million is a week or so of the over priced revenues!!!!!!!! And Mallinckrodt now has a defector monopoly.
I gave this post this own header, because in the public releases, Mallinckrodt is stating in implication it did and that it will make agreesive acquisitions to developed and protect its market in melanocortins, see post verbatim just prior for this interpretation. I can think only Clinuvel and its melanocortins drug program is in mind here. Mallinckrodt fought with Retrophen for this ACTH drug and has to also be apprised of Martin Skhreli fate since. And Retrophen did start its own exploratory Drug RE-039 I think it was, at the same time Retrophen made a weak play to acquire Clinuvel.
Being Mallinckrodt is the first and only with a melanocortins drug in USA, I think they perceive Clinuvel as their threatening competitive technology. But I do not think Skhreli could have nor Mallinckrodt can do an hostile takeover under ASX, nor even get on the board.
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Shkreli, though, has been the poster boy for the drug-pricing debate. As Turing's CEO, he acquired Daraprim, an anti-parasitic, and spiked the price to $750 per pill from $13.50. Mylan (MYL), too, has drawn ire from its price boost on EpiPens to $600 for a pair from about $100 when it acquired the product in 2007.
Excerpt "Analysts seemed unconcerned Thursday that Mallinckrodt would have to license the competitive drug in two indications. IS and NS aren't key areas for Mallinckrodt outside the U.S. and it will be difficult, if not impossible, for Marathon to gain FDA approval for use of the drug on babies, Mallinckrodt said.
"This would entail convincing patients or the parents of infant patients in fragile, high-risk populations to forgo existing approved, effective treatments and enroll in an experimental protocol where they risk receiving less effective treatment or no treatment at all," Mallinckrodt said in a statement.
In a conference call with analysts early Thursday, Mallinckrodt executives said they ascribed zero value to IS and NS when they acquired Questcor, according to Mizuho analyst Irina Koffler. The settlement isn't expected to have an impact on Acthar sales.
Koffler kept her buy rating and 85 price target on Mallinckrodt stock. But the stock remains a "conspiracy theory," despite its attractive valuation, until Mallinckrodt can diversify outside Acthar, she said. The firm said at a recent investor gathering it plans to pursue accretive acquisitions to that end."
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January 26, 2017 06:08 PM Eastern Standard Time
SAN DIEGO & ST. LOUIS--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Mallinckrodt plc (NYSE: MNK) in the U.S. District Court for the District of Columbia. The complaint is brought on behalf of all purchasers of Mallinckrodt securities between November 25, 2014 and January 18, 2017, for alleged violations of the Securities Exchange Act of 1934 by Mallinckrodt's officers and directors. Mallinckrodt develops, manufactures, markets, and distributes branded and generic specialty pharmaceutical products and therapies in the United States, Europe, the Middle East, Africa, and internationally. Among Mallinckrodt's drug portfolio is a medication known as Acthar Gel ("Acthar"), which is the only approved therapeutic preparation of adrenocorticotropic hormone in the United States, and is approved as a treatment for 19 different conditions. Mallinckrodt acquired Questcor Pharmaceuticals, Inc. on August 14, 2014.
“Acthar now represents a significantly greater proportion of our operating income than one-third.”
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View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/mallinckrodt-plc
Mallinckrodt Accused of Downplaying Its Reliance on Medicare and Medicaid Programs
According to the complaint, Questcor, and later Mallinckrodt, used its monopoly status to repeatedly increase the price of Acthar by 85,000%, from $40 per vial in 2001 to over $34,000 per vial in 2017. Acthar became an important revenue source for Mallinckrodt, representing 34% of the company's overall sales in 2016. On an October 6, 2015 conference call with investors, Mallinckrodt's Chief Executive Officer, Mark Trudeau, stated that the company's combined revenues for Medicare and Medicaid constituted roughly 25% of the company's total revenues and that the proportion of Acthar revenues attributable to Medicare and Medicaid was "a little higher than that." However, the complaint alleges that Mallinckrodt officials failed to disclose that Acthar's monopoly status was the product of unlawful anticompetitive practices. In addition, Mallinckrodt allegedly failed to disclose that its increasing reliance on Medicare and Medicaid meant that the company was highly exposed to changes in reimbursement levels for these programs.
On November 16, 2016, Citron Research published a report accusing Mallinckrodt of securities fraud in connection with Trudeau's prior statements which downplayed the company's reliance on Medicare and Medicaid for Acthar revenue. The report revealed that Medicare paid approximately $504 million and Medicaid paid $144.6 million for Acthar in 2015, and these payments amounted to 61.32% of Mallinckrodt's total Acthar revenue in 2015. During a conference call on November 29, 2016, Trudeau admitted that "Acthar now represents a significantly greater proportion of our operating income than one-third." On January 18, 2017, the Federal Trade Commission ("FTC") announced that Mallinckrodt had agreed to pay $100 million in connection with a joint settlement with the FTC and several states. On this news, Mallinckrodt's stock declined by 5.85% to close at $46.53 per share on January 18, 2017.
Mallinckrodt Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDon...@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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Whistle blower lawsuit filed by a Mallinckrodt former salesman gives insight of "allegations" of promotion of off label acthcar and undocumented pressure. With Medicare fraud.
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